Scott had trouble obtaining auto insurance. After three companies refu

Scott had trouble obtaining auto insurance. After three companies refused to insure him, he called the state insurance department.

A representative suggested he obtain coverage through Last Chance Insurance Company because “that’s all they insure—high-risk drivers.” Scott contacted Last Chance. He was not refused coverage; however, the premium Scott was required to pay was three times greater than the average premium in the market. Last Chance Insurance Company is a(n)
A) reinsurance facility.
B) automobile insurance plan.
C) specialty auto insurer.
D) joint underwriting association.

ANSWER

Answer: C